Robert Half International Inc (RHI)

Working capital turnover

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Revenue (ttm) US$ in thousands 6,416,490 6,668,700 6,933,560 7,152,300 7,246,140 7,284,310 7,161,310 6,878,200 6,461,620 5,995,740 5,473,040 5,001,040 5,110,270 5,343,560 5,706,820 6,115,820 6,078,200 6,022,480 5,936,540 5,877,170
Total current assets US$ in thousands 2,297,140 2,328,110 2,378,100 2,252,320 2,285,110 2,249,850 2,260,740 2,272,040 2,268,550 2,233,750 2,053,230 1,873,920 1,842,740 1,853,680 1,720,150 1,606,660 1,628,850 1,631,180 1,564,920 1,532,020
Total current liabilities US$ in thousands 1,235,110 1,276,280 1,276,570 1,148,310 1,216,200 1,234,250 1,266,870 1,289,030 1,358,670 1,341,600 1,196,310 1,076,590 1,046,630 1,052,780 977,167 913,354 940,692 977,440 909,510 900,730
Working capital turnover 6.04 6.34 6.29 6.48 6.78 7.17 7.21 7.00 7.10 6.72 6.39 6.27 6.42 6.67 7.68 8.82 8.83 9.21 9.06 9.31

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,416,490K ÷ ($2,297,140K – $1,235,110K)
= 6.04

Working capital turnover is a financial ratio that indicates how efficiently a company utilizes its working capital to generate sales. A higher working capital turnover ratio signifies better efficiency in managing working capital.

Analyzing the data provided for Robert Half Inc, we observe fluctuations in the working capital turnover ratio over the past eight quarters. The working capital turnover for Q4 2023 was 6.02, indicating that the company generated $6.02 in revenue for every dollar of working capital invested during the quarter.

Compared to the previous quarters, the working capital turnover ratio has shown a decreasing trend from Q1 2022 to Q4 2023. The trend suggests a potential decrease in efficiency in utilizing working capital to generate sales. However, the company has maintained a relatively consistent range between 6.00 to 7.00, indicating a consistent level of efficiency over time.

Further analysis and comparison with industry benchmarks or historical data could provide insights into the company's working capital management effectiveness and help in identifying potential areas for improvement.


Peer comparison

Dec 31, 2023